Civil Monetary Penalty Inflation Adjustment, 7797-7798 [2021-00932]
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7797
Rules and Regulations
Federal Register
Vol. 86, No. 20
Tuesday, February 2, 2021
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
MERIT SYSTEMS PROTECTION
BOARD
5 CFR Part 1201
Civil Monetary Penalty Inflation
Adjustment
AGENCY:
Merit Systems Protection
Board.
ACTION:
Final rule.
jbell on DSKJLSW7X2PROD with RULES
SUMMARY: This final rule adjusts the
level of civil monetary penalties (CMPs)
in regulations maintained and enforced
by the Merit Systems Protection Board
(MSPB) with an annual adjustment
under the Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015 (the 2015 Act) and Office of
Management and Budget (OMB)
guidance.
DATES: This final rule is effective on
February 2, 2021.
FOR FURTHER INFORMATION CONTACT:
Jennifer Everling, Acting Clerk of the
Board, Merit Systems Protection Board,
1615 M Street NW, Washington, DC
20419; Phone: (202) 653–7200; Fax:
(202) 653–7130; or email: mspb@
mspb.gov.
SUPPLEMENTARY INFORMATION:
I. Background
The Federal Civil Penalties Inflation
Adjustment Act of 1990 (the 1990 Act),
Public Law 101–410, provides for the
regular evaluation of CMPs by Federal
agencies. Periodic inflationary
adjustments of CMPs ensure that the
consequences of statutory violations
adequately reflect the gravity of such
offenses and that CMPs are properly
accounted for and collected by the
Federal Government. In April 1996, the
1990 Act was amended by the Debt
Collection Improvement Act of 1996
(the 1996 Act), Public Law 104–134,
requiring Federal agencies to adjust
their CMPs at least once every four
years. However, because inflationary
adjustments to CMPs were statutorily
capped at ten percent of the maximum
VerDate Sep<11>2014
15:58 Feb 01, 2021
Jkt 253001
penalty amount, but only required to be
calculated every four years, CMPs in
many cases did not correspond with the
true measure of inflation over the
preceding four-year period, leading to a
decline in the real value of the penalty.
To remedy this decline, the 2015 Act
(section 701 of Pub. L. 114–74) requires
agencies to adjust CMP amounts with
annual inflationary adjustments through
a rulemaking using a methodology
mandated by the legislation. The
purpose of these adjustments is to
maintain the deterrent effect of civil
penalties.
A civil monetary penalty is ‘‘any
penalty, fine, or other sanction’’ that: (1)
‘‘is for a specific amount’’ or ‘‘has a
maximum amount’’ under Federal law;
and (2) a Federal agency assesses or
enforces ‘‘pursuant to an administrative
proceeding or a civil action in the
Federal courts.’’ 28 U.S.C. 2461 note.
The MSPB is authorized to assess
CMPs pursuant to 5 U.S.C. 1215(a)(3)
and 5 U.S.C. 7326 in disciplinary
actions brought by the Special Counsel.
The corresponding MSPB regulation for
both CMPs is 5 CFR 1201.126(a). As
required by the 2015 Act, and pursuant
to guidance issued by the OMB, the
MSPB is now making an annual
adjustment for 2021, according to the
prescribed formulas.
II. Calculation of Adjustment
The CMP listed in 5 U.S.C. 1215(a)(3)
was established in 1978 with the
enactment of the Civil Service Reform
Act of 1978 (CSRA), Public Law 95–454,
section 202(a), 92 Stat. 1121–30 (Oct.
13, 1978), and originally codified at 5
U.S.C. 1207(b). That CMP was last
amended by section 106 of the
Whistleblower Protection Enhancement
Act of 2012, Public Law 112–199, 12
Stat. 1468 (Nov. 27, 2012), now codified
at 5 U.S.C. 1215(a)(3), which provided
for a CMP ‘‘not to exceed $1,000.’’ The
CMP authorized in 5 U.S.C. 7326 was
established in 2012 by section 4 of the
Hatch Act Modernization Act of 2012
(Hatch Act), Public Law 112–230, 126
Stat. 1617 (Dec. 28, 2012), which
provided for a CMP ‘‘not to exceed
$1,000.’’ On March 4, 2020, the MSPB
issued a final rule which increased the
maximum CMP allowed under both 5
U.S.C. 1215(a)(3) and 5 U.S.C. 7326 to
$1,112 for the year 2020. See 85 FR
12723 (Mar. 4, 2020). This increase
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Fmt 4700
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reflected the annual increase for the
year 2020 mandated by the 2015 Act.
On December 23, 2020, OMB issued
guidance on calculating the annual
inflationary adjustment for 2021. See
Memorandum from Russell T. Vought,
Dir., OMB, to Heads of Executive
Departments and Agencies re:
Implementation of Penalty Inflation
Adjustments for 2021, Pursuant to the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015, M–21–10 (Dec. 23, 2020). Therein,
OMB notified agencies that the annual
adjustment multiplier for 2021, based
on the Consumer Price Index for All
Urban Consumers (CPI–U), is 1.01182
and that the 2021 annual adjustment
amount is obtained by multiplying the
2020 penalty amount by the 2021
annual adjustment multiplier, and
rounding to the nearest dollar.
Therefore, the new maximum penalty
under the CSRA and the Hatch Act is
$1,112 × 1.01182 = $1,125.14, which
rounds to $1,125.
III. Effective Date of Penalties
The revised CMP amounts will go into
effect on February 2, 2021. All
violations for which CMPs are assessed
after the effective date of this rule will
be assessed at the adjusted penalty level
regardless of whether the violation
occurred before the effective date.
IV. Procedural Requirements
A. Administrative Procedure Act
Pursuant to 5 U.S.C. 553(b), the MSPB
has determined that good cause exists
for waiving the general notice of
proposed rulemaking and public
comment procedures as to these
technical amendments. The notice and
comment procedures are being waived
because Congress has specifically
exempted agencies from these
requirements when implementing the
2015 Act. The 2015 Act explicitly
requires the agency to make subsequent
annual adjustments notwithstanding 5
U.S.C. 553, the section of the
Administrative Procedure Act that
normally requires agencies to engage in
notice and comment. It is also in the
public interest that the adjusted rates for
CMPs under the CSRA and the Hatch
Act become effective as soon as possible
to maintain their effective deterrent
effect.
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02FER1
7798
Federal Register / Vol. 86, No. 20 / Tuesday, February 2, 2021 / Rules and Regulations
B. Regulatory Impact Analysis: E.O.
12866
DEPARTMENT OF ENERGY
The MSPB has determined that this is
not a significant regulatory action under
E.O. 12866. Therefore, no regulatory
impact analysis is required.
C. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
requires an agency to prepare a
regulatory flexibility analysis for rules
unless the agency certifies that the rule
will not have a significant economic
impact on a substantial number of small
entities. The RFA applies only to rules
for which an agency is required to first
publish a proposed rule. See 5 U.S.C.
603(a) and 604(a). As discussed above,
the 2015 Act does not require agencies
to first publish a proposed rule when
adjusting CMPs within their
jurisdiction. Thus, the RFA does not
apply to this final rule.
D. Paperwork Reduction Act
This document does not contain
information collection requirements
subject to the Paperwork Reduction Act
of 1995, Public Law 104–13 (44 U.S.C.
Chapter 35).
E. Congressional Review Act
Pursuant to the Congressional Review
Act (5 U.S.C. 801, et seq.), the Office of
Information and Regulatory Affairs
designated this rule as not a ‘‘major
rule’’ as defined by 5 U.S.C. 804(2).
List of Subjects in 5 CFR Part 1201
Administrative practice and
procedure, Civil rights, Government
employees.
For the reasons set forth above, 5 CFR
part 1201 is amended as follows:
PART 1201—PRACTICES AND
PROCEDURES
10 CFR Part 431
[EERE–2017–BT–TP–0047]
RIN 1904–AE18
Energy Conservation Program: Test
Procedures for Small Electric Motors
and Electric Motors
Office of Energy Efficiency and
Renewable Energy, Department of
Energy.
ACTION: Final rule; delay of effective
date.
AGENCY:
SUMMARY: This document delays the
effective date of a recently published
final rule amending the test procedures
for small electric motors and electric
motors. DOE also seeks comment on any
further delay of the effective date,
including the impacts of such delay, as
well comment on the legal, factual, or
policy issues raised by the rule.
DATES: The effective dates of the final
rule published January 4, 2021, at 86 FR
4, and the accompanying correction
published January 15, 2021, at 86 FR
3747, are delayed to March 21, 2021.
Written comments and information will
be accepted on or before March 4, 2021.
FOR FURTHER INFORMATION CONTACT: Mr.
Jeremy Dommu, U.S. Department of
Energy, Office of Energy Efficiency and
Renewable Energy, Building
Technologies Office, EE–2J, 1000
Independence Avenue SW, Washington,
DC 20585–0121. Telephone: (202) 586–
9870. Email:
ApplianceStandardsQuestions@
ee.doe.gov.
Mr. Michael Kido, U.S. Department of
Energy, Office of the General Counsel,
GC–33, 1000 Independence Ave. SW,
Washington, DC 20585–0121. Phone:
(202) 586–8145. Email: Michael.Kido@
hq.doe.gov.
On
January 20, 2021, the Assistant to the
President and Chief of Staff (‘‘Chief of
Staff’’) issued a memorandum outlining
the President’s plan for managing the
Federal regulatory process at the outset
of the new Administration. In
implementation of one of the measures
directed by that memorandum, the
United States Department of Energy
(‘‘DOE’’) hereby temporarily postpones
the effective date of its final rule
amending the test procedures for small
electric motors and electric motors
published in the Federal Register on
January 4, 2021 (86 FR 4) and an
accompanying correction document
published in the Federal Register on
January 15, 2021 (86 FR 3747). The
SUPPLEMENTARY INFORMATION:
1. The authority citation for part 1201
continues to read as follows:
■
Authority: 5 U.S.C. 1204, 1305, and 7701,
and 38 U.S.C. 4331, unless otherwise noted.
§ 1201.126
[Amended]
2. Section 1201.126 is amended in
paragraph (a) by removing ‘‘$1,112’’ and
adding in its place ‘‘$1,125’’.
jbell on DSKJLSW7X2PROD with RULES
■
Jennifer Everling,
Acting Clerk of the Board.
Editorial Note: This document was
received for publication by the Office of the
Federal Register on January 12, 2021.
[FR Doc. 2021–00932 Filed 2–1–21; 8:45 am]
BILLING CODE 7400–01–P
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15:58 Feb 01, 2021
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January 4, 2021 rule amends the test
procedures for measuring the energy
efficiency of small electric motors and
electric motors. Consistent with the
memorandum, DOE is temporarily
postponing the effective date of the final
rule by 60 days, starting from January
20, 2021. The temporary 60-day delay in
effective date is necessary to give DOE
officials the opportunity for further
review and consideration of new
regulations, consistent with the Chief of
Staff’s memorandum of January 20,
2021.
To the extent that 5 U.S.C. 553 applies
to this action, it is exempt from notice
and comment because it constitutes a
rule of procedure under 5 U.S.C.
553(b)(A). Alternatively, DOE’s
implementation of this action without
opportunity for public comment,
effective immediately upon publication
in the Federal Register, is based on the
good cause exceptions in 5 U.S.C.
553(b)(B) and 5 U.S.C. 553(d)(3).
Pursuant to 5 U.S.C. 553(b)(B), DOE has
determined that good cause exists to
forego the requirement to provide prior
notice and an opportunity for public
comment thereon for this rule as such
procedures would be impracticable,
unnecessary and contrary to the public
interest. DOE is temporarily postponing
for 60 days the effective date of this
regulation pursuant to the previouslynoted memorandum of the Chief of Staff
and is exercising no discretion in
implementing this specific provision of
the memorandum. As a result, seeking
public comment on this delay is
unnecessary and contrary to the public
interest. For these same reasons, DOE
finds good cause to waive the 30-day
delay in effective date provided for in 5
U.S.C. 553(d). DOE is, however, seeking
comment on any further delay of the
effective date, including the impacts of
such delay, as well comment on the
legal, factual, or policy issues raised by
the rule.
Signing Authority
This document of the Department of
Energy was signed on January 26, 2021,
by John T. Lucas, Acting General
Counsel, Office of the General Counsel,
pursuant to delegated authority from the
Acting Secretary of Energy. That
document with the original signature
and date is maintained by DOE. For
administrative purposes only, and in
compliance with requirements of the
Office of the Federal Register, the
undersigned DOE Federal Register
Liaison Officer has been authorized to
sign and submit the document in
electronic format for publication, as an
official document of the Department of
Energy. This administrative process in
E:\FR\FM\02FER1.SGM
02FER1
Agencies
[Federal Register Volume 86, Number 20 (Tuesday, February 2, 2021)]
[Rules and Regulations]
[Pages 7797-7798]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-00932]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 86, No. 20 / Tuesday, February 2, 2021 /
Rules and Regulations
[[Page 7797]]
MERIT SYSTEMS PROTECTION BOARD
5 CFR Part 1201
Civil Monetary Penalty Inflation Adjustment
AGENCY: Merit Systems Protection Board.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule adjusts the level of civil monetary penalties
(CMPs) in regulations maintained and enforced by the Merit Systems
Protection Board (MSPB) with an annual adjustment under the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the
2015 Act) and Office of Management and Budget (OMB) guidance.
DATES: This final rule is effective on February 2, 2021.
FOR FURTHER INFORMATION CONTACT: Jennifer Everling, Acting Clerk of the
Board, Merit Systems Protection Board, 1615 M Street NW, Washington, DC
20419; Phone: (202) 653-7200; Fax: (202) 653-7130; or email:
[email protected].
SUPPLEMENTARY INFORMATION:
I. Background
The Federal Civil Penalties Inflation Adjustment Act of 1990 (the
1990 Act), Public Law 101-410, provides for the regular evaluation of
CMPs by Federal agencies. Periodic inflationary adjustments of CMPs
ensure that the consequences of statutory violations adequately reflect
the gravity of such offenses and that CMPs are properly accounted for
and collected by the Federal Government. In April 1996, the 1990 Act
was amended by the Debt Collection Improvement Act of 1996 (the 1996
Act), Public Law 104-134, requiring Federal agencies to adjust their
CMPs at least once every four years. However, because inflationary
adjustments to CMPs were statutorily capped at ten percent of the
maximum penalty amount, but only required to be calculated every four
years, CMPs in many cases did not correspond with the true measure of
inflation over the preceding four-year period, leading to a decline in
the real value of the penalty. To remedy this decline, the 2015 Act
(section 701 of Pub. L. 114-74) requires agencies to adjust CMP amounts
with annual inflationary adjustments through a rulemaking using a
methodology mandated by the legislation. The purpose of these
adjustments is to maintain the deterrent effect of civil penalties.
A civil monetary penalty is ``any penalty, fine, or other
sanction'' that: (1) ``is for a specific amount'' or ``has a maximum
amount'' under Federal law; and (2) a Federal agency assesses or
enforces ``pursuant to an administrative proceeding or a civil action
in the Federal courts.'' 28 U.S.C. 2461 note.
The MSPB is authorized to assess CMPs pursuant to 5 U.S.C.
1215(a)(3) and 5 U.S.C. 7326 in disciplinary actions brought by the
Special Counsel. The corresponding MSPB regulation for both CMPs is 5
CFR 1201.126(a). As required by the 2015 Act, and pursuant to guidance
issued by the OMB, the MSPB is now making an annual adjustment for
2021, according to the prescribed formulas.
II. Calculation of Adjustment
The CMP listed in 5 U.S.C. 1215(a)(3) was established in 1978 with
the enactment of the Civil Service Reform Act of 1978 (CSRA), Public
Law 95-454, section 202(a), 92 Stat. 1121-30 (Oct. 13, 1978), and
originally codified at 5 U.S.C. 1207(b). That CMP was last amended by
section 106 of the Whistleblower Protection Enhancement Act of 2012,
Public Law 112-199, 12 Stat. 1468 (Nov. 27, 2012), now codified at 5
U.S.C. 1215(a)(3), which provided for a CMP ``not to exceed $1,000.''
The CMP authorized in 5 U.S.C. 7326 was established in 2012 by section
4 of the Hatch Act Modernization Act of 2012 (Hatch Act), Public Law
112-230, 126 Stat. 1617 (Dec. 28, 2012), which provided for a CMP ``not
to exceed $1,000.'' On March 4, 2020, the MSPB issued a final rule
which increased the maximum CMP allowed under both 5 U.S.C. 1215(a)(3)
and 5 U.S.C. 7326 to $1,112 for the year 2020. See 85 FR 12723 (Mar. 4,
2020). This increase reflected the annual increase for the year 2020
mandated by the 2015 Act.
On December 23, 2020, OMB issued guidance on calculating the annual
inflationary adjustment for 2021. See Memorandum from Russell T.
Vought, Dir., OMB, to Heads of Executive Departments and Agencies re:
Implementation of Penalty Inflation Adjustments for 2021, Pursuant to
the Federal Civil Penalties Inflation Adjustment Act Improvements Act
of 2015, M-21-10 (Dec. 23, 2020). Therein, OMB notified agencies that
the annual adjustment multiplier for 2021, based on the Consumer Price
Index for All Urban Consumers (CPI-U), is 1.01182 and that the 2021
annual adjustment amount is obtained by multiplying the 2020 penalty
amount by the 2021 annual adjustment multiplier, and rounding to the
nearest dollar. Therefore, the new maximum penalty under the CSRA and
the Hatch Act is $1,112 x 1.01182 = $1,125.14, which rounds to $1,125.
III. Effective Date of Penalties
The revised CMP amounts will go into effect on February 2, 2021.
All violations for which CMPs are assessed after the effective date of
this rule will be assessed at the adjusted penalty level regardless of
whether the violation occurred before the effective date.
IV. Procedural Requirements
A. Administrative Procedure Act
Pursuant to 5 U.S.C. 553(b), the MSPB has determined that good
cause exists for waiving the general notice of proposed rulemaking and
public comment procedures as to these technical amendments. The notice
and comment procedures are being waived because Congress has
specifically exempted agencies from these requirements when
implementing the 2015 Act. The 2015 Act explicitly requires the agency
to make subsequent annual adjustments notwithstanding 5 U.S.C. 553, the
section of the Administrative Procedure Act that normally requires
agencies to engage in notice and comment. It is also in the public
interest that the adjusted rates for CMPs under the CSRA and the Hatch
Act become effective as soon as possible to maintain their effective
deterrent effect.
[[Page 7798]]
B. Regulatory Impact Analysis: E.O. 12866
The MSPB has determined that this is not a significant regulatory
action under E.O. 12866. Therefore, no regulatory impact analysis is
required.
C. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) requires an agency to prepare
a regulatory flexibility analysis for rules unless the agency certifies
that the rule will not have a significant economic impact on a
substantial number of small entities. The RFA applies only to rules for
which an agency is required to first publish a proposed rule. See 5
U.S.C. 603(a) and 604(a). As discussed above, the 2015 Act does not
require agencies to first publish a proposed rule when adjusting CMPs
within their jurisdiction. Thus, the RFA does not apply to this final
rule.
D. Paperwork Reduction Act
This document does not contain information collection requirements
subject to the Paperwork Reduction Act of 1995, Public Law 104-13 (44
U.S.C. Chapter 35).
E. Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801, et seq.),
the Office of Information and Regulatory Affairs designated this rule
as not a ``major rule'' as defined by 5 U.S.C. 804(2).
List of Subjects in 5 CFR Part 1201
Administrative practice and procedure, Civil rights, Government
employees.
For the reasons set forth above, 5 CFR part 1201 is amended as
follows:
PART 1201--PRACTICES AND PROCEDURES
0
1. The authority citation for part 1201 continues to read as follows:
Authority: 5 U.S.C. 1204, 1305, and 7701, and 38 U.S.C. 4331,
unless otherwise noted.
Sec. 1201.126 [Amended]
0
2. Section 1201.126 is amended in paragraph (a) by removing ``$1,112''
and adding in its place ``$1,125''.
Jennifer Everling,
Acting Clerk of the Board.
Editorial Note: This document was received for publication by
the Office of the Federal Register on January 12, 2021.
[FR Doc. 2021-00932 Filed 2-1-21; 8:45 am]
BILLING CODE 7400-01-P